Arizona Real Estate License Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

In the context of a trust deed, the borrower is referred to as the trustor. The trustor is the individual or entity that provides collateral for the loan and conveys the property interest to a trustee, who holds it on behalf of the lender, known as the beneficiary.

In a trust deed arrangement, the trustor not only secures the loan but also retains equitable title to the property, meaning they have the right to use and enjoy the property while fulfilling their obligations under the loan agreement. This distinction is crucial because it underscores the relationship and roles within the trust deed framework: the trustor borrows money and gives the property as security, which is managed by a trustee for the benefit of the lender.

Understanding these roles is essential for navigating the complexities of real estate transactions, as each party has specific rights and responsibilities defined by the terms of the trust deed.